World Bank cuts forecast for Egypt’s GDP growth in FY2023/24

World Bank cuts forecast for Egypt’s GDP growth in FY2023/24

The World Bank Group (WBG) has trimmed its projection for Egypt’s real gross domestic product (GDP) growth for the current fiscal year (FY) 2023/2024 to 3.5%, down from a previous forecast of 4%, according to the bank’s January 2024 Global Economic Prospects report.

WBG also forecasted Egypt’s GDP growth to hit 3.9% in FY 2024/2025, a drop from a previous projection of 4.7%.

It also estimated the country’s economic growth for the elapsed FY 2022/2023 at 3.8%.

Import restrictions limited the amount of inputs available for exports and domestic production, while sluggish corporate activity and a decline in family purchasing power hindered investment and private spending.

In November, Fitch Solutions expected an uptick in Egypt’s GDP to reach 4.2% during the current FY 2023/2024, compared to 3.8% in the elapsed FY 2022/2023.

Fitch Ratings previously downgraded Egypt’s long-term foreign-currency issuer default rating (IDR) to ‘B-’ from ‘B’, with a stable outlook.

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